American semiconductor giant Nvidia has surpassed a $4 trillion market capitalization, becoming the first company in history to reach this remarkable milestone.
Nvidia outpaced tech titans Microsoft and Apple to achieve the landmark, as its stock surged to a record high on Wednesday.
Shares climbed nearly 2% in early trading, hitting an all-time high of $164.32 before settling at $163.36 in after-hours trading, according to Google Finance.
The rally was fueled by investor optimism surrounding the transformative potential of artificial intelligence, propelling Nvidia’s valuation to new heights before easing slightly.
Market capitalization is determined by multiplying the total number of outstanding shares by the current share price. With 24.4 billion shares outstanding, Nvidia’s valuation now stands just below $4 trillion at approximately $3.98 trillion based on the after-hours price.
AI boom catalyst
Nvidia’s market cap milestone underscores a broader shift in corporate investment toward artificial intelligence, which is increasingly seen as the future of technology, according to Robert Pavlik, senior portfolio manager at Dakota Wealth in New York, who spoke to Reuters.
Art Hogan, chief market strategist at B. Riley Wealth, highlighted the company’s evolution—starting as a gaming chipmaker, then moving into crypto mining, and now emerging as a leading provider of AI computing power, he told USA Today.
“It is continuing to move forward and be a clear early winner of artificial intelligence.”
A strong rebound
Despite a $5.5 billion dip in valuation earlier in 2025 amid concerns over rising Chinese AI competitors and U.S. export restrictions—as well as a steep $600 billion market cap drop in January—Nvidia has made a strong comeback.
In the first quarter, the company reported over $44 billion in revenue and $19 billion in earnings, marking a 26% increase year-over-year.
So far this year, Nvidia’s stock has risen 21.3%, significantly outperforming the S&P 500, which has gained 6.5% in the same period.
Market cap competitors
Microsoft ranks as the world’s second-largest company by market capitalization at $3.74 trillion, followed by Apple in third place with $3.15 trillion, according to CompaniesMarketCap. These three tech giants are the only companies with valuations exceeding $3 trillion.
By comparison, Bitcoin— which briefly returned to its all-time high on Wednesday—has a market cap of $2.2 trillion. The entire cryptocurrency market combined is valued at $3.53 trillion, making it smaller than Nvidia alone.
